The government has called for water companies to publish details of projects further in advance to allow efficiencies that will save customers money.
Treasury body Infrastructure UK published recommendations to improve value for money from water sector works.
It said customer water and sewage bills could be cut by 2% by measures including development of projects in advance of the next pricing control period.
Commercial secretary to the Treasury Lord Sassoon said: “Today’s report confirms that the issue of cyclicality is something that no longer needs to be accepted as a feature of the water sector.”
ICE director general Nick Baveystock said: “Addressing cyclicality will provide a platform for growing skills and capacity in the supply chain, leading to greater value for money in the long run.”
Regulator Ofwat will publish its Future Price Limits consultation this autumn, examining how these recommendations can be adopted.